Identity and Belonging

Exercise 2.1 Assets, liabilities and owner’s equity Item | Classification | a Stock of supplies | | b Mortgage | | c Cash at bank | | d Debtors Control | | e Loan | | f Creditors Control | | g Equipment | | h Bank (overdraft) | | i Vehicle | | j Capital | |

Exercise 2.2 Accounting equation a Calculation | | Owner’s Equity | $ |

b Calculation | | Owner’s Equity | $ |

c Calculation | | Owner’s Equity | $ |

d Calculation | | Owner’s Equity | $ |

Exercise 2.3 Accounting equation a Calculation | | Assets | $ | b Calculation | | Assets | $ |

Exercise 2.4 Classification

Current Assets | Non-Current Assets | Current Liabilities | Non-Current Liabilities | | | | |

Note: Capital is an owner’s equity item and is therefore not included in this table.

Exercise 2.5 Accounting equation Current Assets | Non-Current Assets | Current Liabilities | Non-Current Liabilities | Owner’s Equity | 14 200 | 10 400 | | 6 400 | 10 300 | | 15 800 | 400 | 2 000 | 17 800 | 12 000 | 18 000 | 600 | 1 600 | | 41 300 | 25 200 | 19 900 | | 29 600 |

Exercise 2.6 Classified Balance Sheet
Additional Question
Referring to one Accounting Principle, explain why the shop fittings must be valued at $22 000. Accounting Principle | | Explanation | |

a
Referring to one Qualitative Characteristic, explain why the shop fittings must be valued at
$22 000

Qualitative characteristic | | Explanation | |

b Calculation | | | | | | | | | | | | | | Owner’s Equity | $ |

c PARIS FOR HAIR
Balance Sheet as at 31 May 2016 | $ | $ | | $ | $ | Current Assets | | | Current Liabilities | | | | | | | | | | | | | | | | | | | | | Non-Current Assets | | | | | | | | | Non-Current Liabilities | | |